Mobile money boost for network providers

Mobile money boost for network providers
Published: 12 December 2017
MOBILE money services have emerged to be a key revenue contributor for the mobile network providers in Zimbabwe as more subscribers embrace the facility on the back of cash shortages, a report has shown.

In its third quarter sector performance report, the Postal and Telecommunication Authority of Zimbabwe (Potraz) said airtime and merchant payments using mobile money registered the highest increase of 87.9 percent while the value of cross-network transfers declined by 35.3 percent.

According to the report, cash-in transactions grew from $291 million in the second quarter to $396 million, which translates to a 36.1 percent change.

Cash-out transactions stood at $286 million in the second quarter and $365 million in the third quarter showing a growth of 27.9 percent.

Cross-network transfers in the third quarter stood at $270 000 compared to $175 000 in the third quarter showing a decline of 35 percent.

Also, airtime, bill and merchants payments increased by 87.9 percent in third quarter of $486 million compared to $259 million in the second quarter, said Potraz.

"Mobile money services have become an important alternative to cash for business to business transactions, business to person transactions, for example salaries, person to person transactions as well as person to Business transactions such as bill and merchant payments.

"Airtime and merchant payments using the platforms of the three mobile networks registered the highest increase of 87.9 percent," said the authority.

"On the other hand, the value of cross-network transfers declined by 35.3 percent. The introduction of bank to wallet transfers has enabled even wider use of mobile money services. This trend of growing mobile money use  is likely to continue in the current environment. Mobile money has become a popular and convenient alternative method of paying for goods and services in the current environment."

Zimbabwe has three main mobile network providers - Econet, NetOne and Telecel - who compete for the market share and have recently launched innovative products in a bid to expand business.

Last month NetOne launched its OneMoney mobile money service that moves towards a complete financial ecosystem.

In comparison with other mobile money service providers OneMoney charges as little as $0.05 per transaction, Telecash is $0.11 the same amount that EcoCash charges when transacting to registered numbers.
- chronicle
Tags: Mobile, Money,

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